A24-Lancast«r Farming, Saturday, October 19,1985
House sends 1985
WASHINGTON - The House has
passed an omnibus five year farm
bill in an effort to protect farm
income during an economic crunch
which-in some parts of the rural
economy-is the most severe since
the Great Depression, Chairman
Kika de la Garza, D-Tex., of the
House Agriculture Committee
announced.
The Food Security Act of 1985,
HR. 2100, was approved Oct. 8 by a
282 to 141 roll call vote. It will go
next to the Senate where an om
nibus bill approved by that body’s
Agriculture Committee is awaiting
floor action.
“The key word is survival. The
i House action includes what
amounts to a five-year ban on
reductions in target prices for
major commodities. This says to
the nation that we recognize the
depth of the crisis in agriculture. It
says we do not intend to abandon
the American fanner. It says we
want to do everything we can,
within the bounds of fiscal
responsibility, to help efficient
farmers survive today’s troubles
and work their way back to a
situation in which they can earn a
fair living in a fair market,” de la
Garza said.
"Obviously, the bill does not
please everybody. No farm bill
ever does that, and there are still
some important steps ahead before
we get a final Congressional
product. I had hoped the bill would
include a provision approved by
the House Agriculture Committee
allbwing wheat and feed grain
farmers to vote in a referendum on
whether to switch to a program
including voluntary surplus
control and higher supports. But
the package approved Tuesday
represents the best consensus we
could get in the House. I realize
that the administration has op
posed some features of this bill in
the past, but I hope that the
President will now recognize-in
view of the depth of the crisis in
agriculture-that what we have
produced deserves support," de la
Garza added.
In addition to income protection
and surplus control programs for
major crops, the bill includes
sections on exports, conservation,
food assistance for needy
Americans, and other programs
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“For commodities like grains,
cotton and rice the bill preserves
the basic income protection which
farmers need in these dangerous
times while also taking steps
toward making the market prices
of American products more
competitive on world markets.
“The bottom line is that the
House bill preserves a fanner
safety net, but it also moves
toward reducing the federal deficit
by holding spending for
agriculture within the bounds set
by the overall Congressional
Budget Resolution,” de la Garza
said.
The House bill provides that for
five crop years beginning in 1986,
market prices of major crops
including wheat, corn, cotton and
rice would be made more com
petitive by linking commodity
price support loan rates more
closely to market conditions, and
by several export expansion
programs. At the same time,
however, the actual income return
to farmers who cooperate with
strengthened voluntary acreage
surplus-control programs will be
protected. This will be done by
retaining a system of target prices
and providing that these targets
Farm Bill to Senate for action
cannot be cut from current levels
for the 1986 and 1987 crop years and
probably for the following three
years as well. The bill would allow
5 percent target price reductions
for 1988, 1989 and 1990 crops-but
these cuts could mot take effect
unless farmers’ costs first declined
by the same amount.
Additionally, the legislation
includes:
-- A market-oriented dairy
program with provisions for a
farmer-financed surplus reduction
program, and programs for other
commodities including soybeans,
peanuts, sugar and wool.
- Conservation programs in
cluding a long-term Conservation
Reserve to shift fragile cropland
into less intensive use; a sodbuster
program to discourage conversion
of fragile land into crop use; and a
swampbuster plan to discourage
draining of wetlands for crop use.
- Trade expansion programs
including the use of surplus crops
as export bonus payments to meet
unfair foreign competition in
commercial markets and
provisions which extend and ex
pand the Food for Peace and
related programs.
- Agricultural credit and rural
development provisions including
new regulations for handling
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farmland acquired by the
Agriculture Department in loan
foreclosures.
- Extension of domestic food
assistance programs, including
extension of the Food Stamp
program with some modest
restoration of past benefit cuts for
the needy.
- Extension of agricultural
research authority with some new
research priority guidelines, and a
provision requiring a study of the
need for continued use of leaded
fuel in farm machinery before the
EPA could impose any further cut
in lead levels for farm fuel.
Major provisions of the bill in
clude:
COMMODITY STABILIZATION
PROGRAMS
-FOR WHEAT, FEED
GRAINS, COTTON AND RICE,
the target price and commodity
support loan programs which the
bill provides for those commodities
would adopt for 1986 through 1990
crops a market-oriented system
for setting price support loans at
levels that would make American
crops competitive in international*
markets, coupled with continued
target price protection. Basic
initial loan rates for grains, cotton
and rice would be set each year on
the basis of formulas using
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average market prices of recent
years (with any declines limited to
5 percent a year). After
calculating the basic initial rates,
the Secretary could then further
reduce the rate for any year by up
to 20 percent if market prices in the
previous season had failed to top
105 percent of the previous year’s
basic loan rate, or the further cut
was needed to compete on world
markets. These potential final loan
rate reductions would be
discretionary for wheat and feed
grains but mandatory for cotton
and rice. (Also, for wheat and feed
grains only, the Secretary would
have discretionary authority to
operate a “marketing loan”
system instead of using standard
“non-recourse” price support
loans for any year. Under the
marketing loan plan,'the Secretary
would keep wheat and feed grain
loan rates at the basic formula
level and would require repayment
of the loans, but he would allow
repayment at market-price levels
instead of the loan level.) For
cotton and rice, the bill provides
that if world markets sink below
final U.S. loan levels, the govern
ment would make a special ad
ditional market payment to bring
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